KARACHI: Kot Addu Power Company (Kapco) recorded a net profit of Rs2.32 billion in the first quarter of financial year 2016-17, up 10% compared with Rs2.11 billion in the same period of the previous year, according to a company notice sent to the Pakistan Stock Exchange (PSX) on Thursday.
Earnings per share rose to Rs2.63 in July-September 2016 compared with Rs2.39 in the corresponding period a year earlier. Revenues of the company, which produces 1,600 megawatts of electricity, fell 19% year-on-year because of a 7% drop in fuel prices and possibly a lower dispatch factor in the first quarter, said a BMA Capital report.
Gross margins improved by 500 basis points on the back of decline in operation and maintenance expenses following completion of a major overhauling process.
Finance cost, however, increased 14% to Rs955 million despite lower average discount rate in 1QFY17. Higher finance cost could be the outcome of higher short-term borrowings to meet working capital needs of the company, the report added. Other income showed an increase of 14% year-on-year after the piling up of receivables of the company.
